YVR CONNECTS 2015 SUSTAINABILITY REPORT 2 | VANCOUVER INTERNATIONAL AIRPORT Vancouver Airport Authority is the community-based, not-for-profit organization that manages Vancouver International Airport (YVR). We have no shareholders and we reinvest all profits back into airport operations and development. We are committed to creating an airport that British Columbia can be proud of: a premier global gateway, local economic generator and community contributor. Each year, Vancouver Airport Authority produces an annual report to share our financial results as well as provide an update on our activities. For 2015, we have created a comprehensive Sustainability Report—reflecting our commitment to the four pillars of sustainability: Social, Economic, Environment and Governance. We believe that being a good corporate citizen means transparently sharing our results and factoring sustainability into our organizational decision-making process. To YVR, sustainability encompasses more than just our impact on the environment—it also reflects the positive and negative impacts on the world in which we live from an economic and community perspective. The 2015 YVR Sustainability Report summarizes Vancouver Airport Authority’s activities and business results at Vancouver International Airport in 2015. YVR CONNECTS | 2015 SUSTAINABILITY REPORT | 1 VALUES Safety, Teamwork, Accountability, Innovation VISION A world-class, sustainable gateway between Asia and the Americas MISSION Connecting British Columbia Proudly to the World 2 | VANCOUVER AIRPORT AUTHORITY 2015 AWARDS 2015 Best Airport in North America and Best in the World in the size category of Canada’s Best Health & 10–20 million passengers. Safety Culture Award and This just in: 2016 Best Airport the Gold Award in the in North America for the 7th Transportation category consecutive year. Health and Safety Achievement Recognition Named one of BC’s Top Award for Organizations Employers—nine years with 51 to 500 Employees in a row Named one of BC’s Most Loved Brands Dream Employer of BC World Airport Innovation Best Outlet Centre— of the Year—YVR’s McArthurGlen Designer BORDERXPRESS™ kiosks Outlet Vancouver Airport 2015 Business in Vancouver and the Chartered Professional Accountants of BC recognized Glenn McCoy—YVR’s Senior VP, Strategy and CFO—as the 2015 top CFO for Publicly Accountable Enterprises The British Columbia Aviation Council gave Gerry Bruno—YVR’s VP, Federal Government Affairs—the Robert S. Day Award in recognition of outstanding leadership for the promotion and development of aviation in BC Peggy G. Hereford Award for Best Overall Marketing and Communications Accomplishments 1st place in Marketing Campaigns for Air France campaign 1st place in Community Education & Outreach for YVR’s Autism Outreach Program YVR CONNECTS | 2015 SUSTAINABILITY REPORT | 3 CONTENTS 6 MESSAGE FROM MARY JORDAN: CHAIR, BOARD OF DIRECTORS 7 MESSAGE FROM CRAIG RICHMOND: PRESIDENT & CEO 8 2015 HIGHLIGHTS 24 OUR LEADERSHIP 28 OUR BUSINESS 52 OUR COMMUNITY 90 OUR ENVIRONMENT 120 APPENDIX: CORPORATE GOVERNANCE REPORT 4 | VANCOUVER AIRPORT AUTHORITY YVR CONNECTS | 2015 SUSTAINABILITY REPORT | 5 MESSAGE FROM MARY JORDAN | CHAIR, BOARD OF DIRECTORS On behalf of the Board of Directors, I would Vantage Airport Group, our subsidiary, has like to thank you for supporting YVR in 2015. grown into a very successful company. We As a not-for-profit organization, YVR is determined that it was time to sell our committed to our community. In 2015, we 50 per cent stake, in order for Vantage to channelled this commitment through our continue to grow and for YVR to focus on our three-year Strategic Plan, focusing our ambitious Strategic Plan. The sale closed in actions on competitive and sustainable late 2015 and will allow Vantage to acquire objectives with a goal of reaching 25 million the funding it needs to pursue future large- passengers by 2020. scale airport projects. YVR will continue to work with Vantage through a strategic We aligned our operations under a renewed partnership agreement that includes sharing environmental plan, which sets ambitious of our employees’ expertise, knowledge and emissions targets for 2020. To ensure we leading-edge approach to innovation. grow sustainably, we sought input from the community for YVR’s new 20-year Thank you for contributing to our discussions, Master Plan at our summer festivals and for choosing our airport and for being a part speaking engagements. We also continued of YVR’s vision. We strive to be a world-class to give back, contributing over $900,000 to connecting hub, one that links passengers support community initiatives such as Quest and products from around the world to British Food Exchange, the Nature Conservancy Columbia. We could not do this without of Canada, Hub Cycling, Canucks Autism the support of our partners, communities Network and many more. and employees, all of whom provide the foundation for our ongoing success. At our core is an engaged and driven team, dedicated to safety, health and security. This team worked hard to deliver a remarkable airport experience—and it didn’t go unnoticed. We once again made the BC’s Top Employers list in recognition of our great workplace. And MARY B. JORDAN for the first time, Vancouver Airport Authority Chair, Board of Directors received the Best Health & Safety Culture Vancouver Airport Authority award and the Gold award in the Transportation category of Canada’s Safest Employers. 6 | VANCOUVER AIRPORT AUTHORITY MESSAGE FROM CRAIG RICHMOND | PRESIDENT & CEO When the curtain dropped at the A-B all during our 100 busiest days ever, when up Connector’s grand opening on January 13, to 75,000 passengers traveled through YVR unveiling Marianne Nicolson’s beautiful each day. We also opened our new Airside river-themed art piece, it was clear that 2015 Operations Building, which consolidates would be a superlative year. all airside operations and features award- As Canada’s second busiest airport, YVR winning design focused on sustainability. welcomed a record 20.3 million passengers The more than 23,000 people who work and in 2015. These passengers shopped in our volunteer at YVR continued to shine. Our stores, engaged with our employees—and world-renowned Green Coat volunteers voted for us, awarding YVR Best Airport in helped passengers in 26 languages, while North America at the Skytrax Awards for an our employees and business partners unprecedented sixth consecutive year. delivered diverse events throughout the Throughout 2015, we delivered remarkable terminal and in our communities. customer experiences. The new McArthurGlen In early 2016, I was honoured to hear that BC Designer Outlet Vancouver Airport opened Business once again announced YVR as one in July and became McArthurGlen’s of the province’s most loved brands. We have most successful launch ever, with over achieved this recognition because we believe 160,000 visitors on the first weekend. Our everyone counts. Every passenger helps us BORDERXPRESS™ kiosks received the reach our growth targets. Every employee CAPA Centre for Aviation’s 2015 Best Airport delivers an exceptional experience. And Innovation in the World Award. And we every community member who chooses continued work on facility improvements, YVR supports an organization dedicated to including a new high-speed baggage providing social and economic benefits. This system, improved aircraft gates and ongoing is how we go beyond, every day. We do it renovations to the original parts of our building. together—as BC’s airport. Outside the terminal, we focused on building a safer, more efficient airport. In the summer, we began a multi-year construction program to build Runway End Safety Areas. We CRAIG RICHMOND conducted repaving on a primary taxiway and President & CEO installed more efficient LED runway lighting— Vancouver Airport Authority YVR CONNECTS | 2015 SUSTAINABILITY REPORT | 7 2015 HIGHLIGHTS 2015 demonstrated, once again, that YVR’s ongoing success is a combination of vision, hard work and careful planning. All of our activities in 2015 stemmed from our Strategic Plan, which sets the fundamental direction of the organization and provides the basis for our comprehensive approach to planning. From improving infrastructure to opening new facilities, 2015’s activities largely fell under one of four supporting objectives: 8 | VANCOUVER AIRPORT AUTHORITY CREATE A CONNECTING HUB BETWEEN ASIA AND THE AMERICAS BE A LEADER IN SUSTAINABILITY DELIVER REMARKABLE CUSTOMER EXPERIENCES BUILD ON OUR STRONG FOUNDATION YVR CONNECTS | 2015 SUSTAINABILITY REPORT | 9 CREATING A CONNECTING HUB IN 2015, WE CONTINUED WORK ON KEY INITIATIVES THAT WILL ENSURE WE REMAIN A WORLD-CLASS, SUSTAINABLE CONNECTING HUB. VISA-FREE INITIATIVES For more than 20 years, YVR has worked with its partners to progressively expand visa-free transit between Asia and the Americas, making new routes commercially viable while contributing to BC’s economy. In 2015, the Government of Canada announced the addition of five Chinese cities—Xiamen, Fuzhou, Chengdu, Shenyang and Harbin—to the list of approved cities under the China Transit Program, which allows Chinese nationals to travel through YVR en route to the US without requiring a Canadian visa. We will continue to work towards expanding this program and other visa-free initiatives in 2016. 10 | VANCOUVER AIRPORT AUTHORITY INTEGRATED MARKETING STRATEGY CARGO In June, YVR introduced a new Integrated YVR works closely with businesses to provide Marketing Strategy that seeks to combine markets with products while identifying the efforts of our Air Service Development, opportunities for growth. We recently set up Government Relations, Marketing, a new company, Vancouver Airport Property Communications, Community Relations and Management, to redevelop and manage our other Airport Authority teams in pursuit of cargo and building facilities, while working our goal of reaching 25 million passengers with industry to meet their service and by 2020. Under the new strategy, we take a facility needs. And in 2015 we entered into a Team YVR approach—working closely with partnership with Shanghai-Pudong airport tourism bodies, business organizations, to study the perishable supply chain.